In 2019, the American Institute of CPAs launched a analysis report whose findings had been alarming for the accounting career.
In line with the report, hiring of latest accounting graduates declined 11% because the earlier traits report in 2016, with the quantity having fallen a whopping 30% throughout the earlier two studies. However this did not replicate much less hiring amongst CPA companies; non-accounting hires in public accounting companies elevated by 11 proportion factors to just about a 3rd of whole employees. This pattern displays the evolution of the accounting career, which requires accounting companies to rely closely on know-how and information evaluation. The narrative gleaned from these findings was that accounting curricula — and the CPA examination itself — had been behind the instances and the wants of the trade itself.
The AICPA and the Nationwide Affiliation of State Boards of Accountancy responded with a “hole evaluation” to find out particularly the areas which are turning into more and more essential to the career, discovering these areas embody information analytics and IT audit, however much more so cybersecurity, IT governance and programs and group management engagements. This culminated with the discharge final month of the AICPA’s long-awaited publicity draft detailing its proposal for the construction and content material of the brand new CPA examination, which can launch in 2024. Which means present accounting college students graduating after 2023 might be taking the brand new examination, as will another college students who could graduate earlier than then however take it after 2023.
The method by which the proposed new examination was devised known as CPA Evolution, an initiative by the AICPA and NASBA to establish an important traits and expertise gaps within the accounting career. The proposed CPA Examination Blueprint tells us not simply what the longer term CPA examination will appear to be, however the course during which the career itself goes and what the general public accountant of the approaching decade might be doing. Earlier than we discover the larger image, although, let us take a look at the small print of the publicity draft.
Accounting school and employers, in addition to college students who will take the CPA examination in 2024 and past, ought to be intently reviewing the publicity draft, particularly because the AICPA’s public remark interval ends on Sept. 30.
The proposed adjustments to the examination construction advantage consideration, with a shift from the present 4 examination sections to 3 “Core” sections: Monetary Auditing and Reporting (FAR), Auditing and Attestation (AUD), and Taxation and Regulation (REG) plus three “Self-discipline” tracks, of which a CPA candidate must go one. These tracks are as follows: Enterprise Evaluation and Reporting (BAR), Info Programs and Controls (ISC), and Tax Compliance and Planning (TCP).
This transformation may seem like including extra to the CPA examination, however on the Core stage these adjustments signify a streamlining of the content material at present lined on the examination, which can make it simpler to check for the Core exams and permit candidates to deal with harder and career-specific content material on their chosen Self-discipline examination.
The proposed adjustments to the examination content material are additionally notable. One is that know-how and information are extra totally built-in into the blueprint than ever earlier than — each within the necessary Core sections and within the Self-discipline tracks. This might be achieved by testing the candidates’ understanding of the function of knowledge in IT programs, utilizing that information to make key selections, verifying the accuracy of knowledge and utilizing the outputs of automated instruments, visualizations and information analytic methods.
As well as, there’s an elevated deal with IT audits, particularly SOC engagements. Knowledge-derived choice making can also be emphasised, and so is choice making extra broadly. Moreover, there’s now a Private Monetary Advisory Providers module within the TCP Self-discipline, which is indicative of elevated demand for tax planning round private wealth associated to property, present, belief and retirement points.
So, what do all these adjustments say in regards to the accounting career as we go into the mid-2020s and past? How is our discipline altering, what are the weaknesses and alternatives, and what competencies will CPAs want sooner or later?
First, the longer term accountant might be extra specialised. That is mirrored within the plan to exchange the 4 necessary sections with three necessary Core sections after which considered one of three Self-discipline sections. College students considering a profession in accounting however involved in regards to the breadth of the CPA examination ought to welcome this alteration; it can permit them to raised deal with the profession observe and/or the kind of group during which they wish to work, in addition to pursue a observe that matches their expertise and pursuits. This is usually a game-changer for college kids involved about their skill to grasp all 4 present sections; it means they’ll be capable of higher tailor their research to what they’re good at, which means much less stress over programs and the examination itself. And companies cautious of hiring CPAs they could see as generalists will be capable of choose extra specialised and centered new hires based mostly on what Self-discipline observe they pursued.
Secondly, passing the CPA examination will present the newly licensed CPA has the tech expertise anticipated right now. The heavy emphasis on know-how, information and IT audit within the AICPA blueprint is aimed squarely at overcoming the present hole that makes accounting companies look past the CPA pool for workers. According to the examination adjustments, the AICPA launched the CPA Evolution Mannequin Curriculum, which outlines the matters accounting packages ought to embody of their curriculum to raised acquaint college students with the newest matters and know-how used within the discipline, permitting CPAs to do extra within the tech house than ever earlier than, or no less than to raised perceive how know-how and information can be utilized to glean insights for choice making.
College students and instructors alike could also be cautious of those adjustments, however they’ve been crafted with the course of the career in thoughts and embody the way forward for accounting. They may also in some ways make issues less complicated for aspiring CPAs, as they streamline the preparation for the examination along with introducing new competencies. And for the career as a complete, it represents transferring with the instances to constantly evolve consistent with the wants of a altering world.